VAT Fundamentals
A timeless guide to adding and removing VAT with editable rates, written to stay useful as a formula reference rather than a fixed legal statement about any one tax regime.
Key formulas
How to think about VAT maths
VAT questions are often simpler than they look once you separate the net amount, the VAT amount, and the gross total. The rate itself should stay editable because the maths is timeless even when the tax setting changes.
This site treats any default rate as a convenience only, not as a permanent rule.
Worked example
If a net amount is 100 and the VAT rate is 20%, the gross amount is 120. Going the other way, a gross amount of 120 divided by 1.20 returns a net amount of 100.
That reverse step matters because simply subtracting 20% from the gross amount is not the same calculation.
Assumptions and limits
- The calculators only use the rate you enter.
- They do not decide which goods or services should carry a particular rate.
- Mixed-rate, exempt, or jurisdiction-specific treatment should be handled outside the basic formula.
Apply the topic straight away.
VAT Add Calculator
Add VAT to a net amount using an editable rate that you control rather than a hardcoded tax assumption.
VAT Remove Calculator
Remove VAT from a gross amount using an editable rate so the tool stays useful even when tax assumptions change.
Discount Calculator
Use the Discount Calculator to work out discount from values you control yourself, without baked-in policy assumptions.
Profit Margin Calculator
Work out gross profit, profit margin, and markup from the selling price and cost you enter.